Real estate soars despite rate uptrend

Land rates in Bihar still continue to soar. And, sale of land has grown so, that the registration department is now able to show collections beyond its wildest dreams.

Notwithstanding the confusion over rates of property in and around the state capital, the volume of revenue collected by the registration department in lieu of sale of land and apartments has registered a 50% growth, vis-a-vis the same corresponding period last year.

According to the statistics of the registration department, the state had earned Rs. 653.51 crore as revenue from the sale and purchase of land and apartments till July 2012, which is up by Rs. 219.22 crore from what was collected during the same period in 2010-11.

Officials attributed the hike in revenue collection of the department mainly due to the sale of land in urban areas. "Patna has contributed the most," said a deputy secretary rank officer of the department, while adding that the government circle rate in various areas of the state capital may be revised in keeping with the soaring market rates.

Admitting, that the registration of apartments has come down drastically over the last two years due to some technical difficulties, the officials said, money was now being routed to the new capital region (NCR) of Delhi and other metropolitan cities like Bangalore and Pune where prices of apartment is lower than that in Patna, with the added benefit of emenities, which Bihar land developers never offer.

Moreover, the officials maintain that the state government's plan to make deeds of property registration available on the net from next year is also acting as a major deterrent for the investors in real estate.

They also said the transparency factor integrated in purchase of property of more than Rs. 30 lakh, is another issue that has discouraged moneyed people from buying houses in and around the state capital. The registration department is also looking to revise the minimum value register (MVR) rate of some localities, where it has been found to be much lower than the market price.

Buoyed by the achievement, the registration department hopes to net Rs. 2,000 crore as revenue from sale and purchase of land and property by the end of this fiscal.

Last year the department had collected Rs. 1,610.36 crore revenue for the state.